THE INSTITUTE OF FINANCE MANAGEMENT

FACULTY OF ACCOUNTING, BANKING AND FINANCE

DEPARTMENT OF ACCOUNTING AND FINANCE

BACHELOR OF ACCOUNTING

ACADEMIC YEAR: 2022/2023

YEAR - THREE

STREAM A, GROUP 2

INDIVIDUAL ASSIGNMENT

ENTREPRENEURSHIP: MSU 08502

NAME REG NUMBER

FESTO A. MTAFYA IMC/BAC/2010939

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1. Prepare a business model for Bike/ bicycle sharing for college students
MALAMPAKA BIKE AND BICYCLE SHARING BUSINESS MODEL CANVAS.
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER CUSTOMER
-The partners of the -The company has been -To improve the quality RELATIONSHIP SEGMENTS
business are Festo projected the increase of the colleges life. -It is affordable and -The groups of
Amasha and Steve the growth rate of the -To provide affordable convenient way. customers are creating
Mtafya where the company as soon as value for are colleges
means of shared -Easy to use the
profit and loss will be possible. students and other local
-Bike and bicycle transportation for application.
distributed to each citizens.
partner. deployment and convenient short trips -It is friendly and
-The most important
-The key resources are maintenance. in the city. affordable. customers are colleges
we acquiring from -Customers support for -To provide students because the
partner is Bike and the business. transportation which aim of the business is to
Bicycle. -It operates in more will help students to be help colleges students
-The key activities do than 5 colleges in Dar es on time in their to have quick
partners perform is to salaam city. transports.
sessions.
manage and control the KEY RESOURCES CHANNELS
business and their -Adequate capital. -Email
employees. 500 registered bikes and -Website
bicycles. -Play store
-10 registered staff to
-Appstore
control the business.
-Most universal and -Apple store
simple transport tool. -M-pesa
-Computer technology. -Tigo pesa
-Application of -Airtel money
malampaka bike and
bicycle sharing.

COST STRUCTURE REVENUE STREAM(S)

-Customer service cost -Pre-paid
-Salaries for employees -Monthly subscription
-IT infrastructure such as application fee -Reduction of disposable costs
-Maintenance and reconditioning.

2. Identify three models of corporate social responsibility.

Corporate social responsibility (CSR) refers to strategies that companies put into action as part
of corporate governance that are designed to ensure the company’s operations are ethical and
beneficial for society. It focuses on the wealth creation for optimal benefit of all stakeholders
including shareholders, employees, customers, environment and society. It has four categories
which are environmental responsibility, human rights responsibility, philanthropic
responsibility and economic responsibility.

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 The following are the models of corporate social responsibility
i. Friedman doctrine Model
ii. Carroll's Model
iii. Ackerman Model

I. Friedman Model
What is the Friedman Doctrine?
The Friedman Doctrine is also referred to as the Shareholder Theory. Milton Friedman
introduced the theory in a 1970. The Friedman Doctrine holds that decisions concerning social
responsibility rest on the shoulders of the shareholders, not the executives of the company. He
argues that an entity is not obligated to any social responsibilities unless the shareholders
decide to such an effect.
It provides insights on how to increase shareholder value. According to the doctrine,
shareholder satisfaction is an entity’s greatest responsibility. However, the doctrine also faces
expansive criticism since it turns a blind eye to social responsibility activities.

II. Carroll's Model

This is a model increasingly used to define business social responsibility. It was developed in
1991 by Archie Carroll. According to Carroll, 'corporate social responsibility involves the
conduct of a business so that it is economically profitable, law abiding, ethical and socially
supportive'. Carroll produced a pyramid that identifies the different types of obligations that
society expects of businesses. The layers of the pyramid are economic responsibility, legal
responsibility, ethical responsibility and philanthropic responsibility.

III. Ackerman Model

It was developed in 1976 by Robert Ackerman, it focuses more on internal policy goals and
their relation to these responsibilities. He says, to adopt Corporate Social Responsibility one
can follow six strategies: rejection strategy, adversary strategy, resistance strategy, compliance
strategy, accommodation strategy and proactive strategy.

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 It has four stages
1. Managers of the company get to know the most common social problem and then express a
willingness to take a particular project which will solve some social problems.
2. Intensive study of the problem by hiring experts and getting their suggestions to make it
operational.
3. Managers take up the project actively and work hard.
4. Evaluating of the project by addressing the issues.

3. Discuss the criticisms in the contemporary business environment.

a) Rising Costs of Operations; investing in csr, at any scale, can lead to high costs and
expenses. organizations may have to reorganize their finances to accommodate this
budgetary change. they need investment to train employees, launch campaigns and
collaborate with external agencies to roll out programs. it largely depends on the type of
csr initiative, but most call for an effort to ensure things go to plan.
b) Locking Horns with Stakeholders; shareholders, clients or customers may experience the
financial burden of an organization’s csr activities. in terms of investors, they’ll be keen to
learn where and how their money is being spent. clients would want to know about your
initiatives, whether they align with their organization’s missions and if there are conflicts
of interest. customers pay greater attention to organizations that make visible csr efforts.
this can impact your marketing and sales initiatives.
c) Public Image; one of the most significant disadvantages of csr in business is the impact on
public image. once you’re in the public eye, you’re more likely to be scrutinized for
everything you do. as an organization that upholds its credibility with its actions, you may
be subject to criticism over the smallest acts. this can put you at a disadvantage as it may
affect your customer base. organizations have to invest substantially to maintain their
public image and sustain their brand.
d) Increased Accountability; organizations that invest in csr agree to be more accountable and
responsible for their actions. if your business operations negatively impact the
environment, for instance, you have to do damage control and set things right.
e) Losing Sight of What Matters; sometimes when you’re fully invested in external activities
that take you away from your work, you may lose sight of what matters. you may start

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 doing CSR just because you get traction and attention. some may resort to attracting
numbers of people with empty promises and hollow campaigns. it’s important to be true to
yourself, trust the process and give your best shot when you’re trying to do something good
for others.

4. To identify three ethical dilemmas, you have encountered as a student, discuss the moral
reasoning theory used to judge your action

Social Diversity

This is the differences seen in a particular society in the case of religion, culture, economic status.
If the people of a particular society in the case of religion, cultural backgrounds, social status,
economic status, linguistic environment this phenomenon is called social diversity. it is vital for
every place of education, especially public schools and colleges, to aim for ethnic and social
equality in what is offered. Students from ethnic minorities and diverse backgrounds should not
feel left out.

Social Inequity

The biggest ethical issues that schools face is social inequity. Education institutions fail to address
the problems that arise thanks to the inequalities between different children because of their
economic, ethnic, and other family backgrounds. A child from a poorer background will likely
have difficult time in school than someone from the opposing end of the spectrum. School
administrators often punish these children for having bad academic performance instead of being
offered assistance in an alternative fashion.

Grading Exams

It is important to reassess how student learning is assessed. Exams and tests are not necessarily a
good way to do so, as many young people can face issues when sitting in exams. A bright student
might find it impossible to pass the easiest of tests just because of anxiety or another concern. This
also leads to pretty predictable outcomes because certain students will always do well in exams
while others won’t.

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5. To discuss valuation of the start-up business, its techniques and methodology.

Start-up valuation is simply the value of a start-up business taking into account the market forces
of the industry and sector in which that business belongs.

These factors include the balance (or imbalance) between demand and supply of money, the size
of recent events, the willingness of investors to pay premiums to invest in the company and the
level of need the company has for money.

The various methods through which the value of a start-up is determined include the (1) Berkus
Approach, (2) Cost-To-Duplicate Approach, (3) Future Valuation Method, (4) the Market Multiple
Approach, (5) the Risk Factor Summation Method, and (6) Discounted Cash Flow (DCF) Method.

a) Venture Capital Method; The Venture Capital Method (VC Method) is one of the methods for
showing the pre-money valuation of pre-revenue start-ups. The concept was first described by
Professor Bill Sahlman at Harvard Business School in 1987.
b) Berkus Method; The Berkus Method assigns a range of values to the progress start-up business
owners have made in their attempts to get the start-up off of the ground.
c) Scorecard Valuation Method; The Scorecard Valuation Method uses the average pre-money
valuation of other seed/start-up businesses in the area, and then judges the start-up that needs
valuing against them using a scorecard in order to get an accurate valuation.
d) Risk Factor Summation Method; The Risk Factor Summation Method compares 12 elements
of the target start-up to what could be expected in a fundable and possibly profitable seed/start-
up using the same average pre-money valuation of pre-revenue start-ups in the area as the
Scorecard method.
e) Cost-to-Duplicate Method; This approach involves looking at the hard assets of a start-up and
working out how much it would cost to replicate the same start-up business somewhere else.
The idea is that an investor wouldn't invest more than it would cost to duplicate the business.
f) Discounted Cash Flow (DCF) Method; This method involves predicting how much cash flow
the company will produce, and then calculating how much that cash flow is worth against an
expected rate of investment return. A higher discount rate is then applied to start-ups to show
the high risk that the company will fail as it's just starting out; This method relies on a market
analyst's ability to make good assumptions about long-term growth which for many start-ups
becomes a guessing game after a couple of years.

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